Argentine Government authorised an industry-wide increase in domestic airfares on 17-Nov-2009, with the measures designed to "guarantee appropriate air traffic public service" and "protect the local air market" (Reuters, 17-Nov-2009).
Argentina authorises industry-wide air fare increase
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Argentina’s domestic market grew by approximately 60% from 2011 to 2015, driven entirely from expansion at the Aerolineas Argentinas Group. Competition during this period was limited by the restrictive and protectionist policies of the previous government, enabling Aerolineas to increase its market share without having to fend off expansion from its local rival LATAM Argentina, or potential start-ups.
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Argentina Aviation Part 1: Avianca, Copa & LATAM promote international traffic at secondary cities
Argentina’s secondary cities are poised to see a spike in international traffic as the new government liberalises Argentina’s aviation market after years of restrictions. The three largest cities outside Buenos Aires – Cordoba, Rosario and Mendoza – should all benefit as restrictions on foreign airlines are lifted.
Panama-based network airline group Copa is launching services from Panama City to Rosario, a market it has sought to access for several years, at the beginning of Jul-2016 and is now looking at also serving Mendoza. Colombia-based airline group Avianca is aiming to launch services from Lima to Cordoba with potential feed in Cordoba from a planned new Argentina-based regional airline.
Latin America’s largest airline group LATAM already launched services from Lima to Salta, a smaller secondary Argentinean city, in Jun-2016. LATAM is planning to add services from Lima to Rosario at the beginning of Jul-2016 and from Lima to Mendoza in early 2017. LATAM is the only group with an affiliate in Argentina but all the new Argentina routes so far are being operated by its Peruvian entity.